Rockwell Automation, Inc. (NYSE:ROK) shares traded higher premarket on Wednesday after the company reported better-than-expected second-quarter results.

Sales fell 6% year over year (Y/Y) and slid 4% organically to $2.001 billion, in line with the consensus of $1.96 billion.

Segment Details: Intelligent Devices sales declined 8% Y/Y to $896 million, Software & Control fell around 1% Y/Y to $568 million and Lifecycle Services declined 8% Y/Y to $537 million.

Total ARR grew 8% Y/Y. Adjusted EPS was $2.45 (-2% Y/Y), above the analyst consensus of $2.09.

Total segment operating earnings for the quarter upped 1% Y/Y to $408 million. Segment operating margin expanded to 20.4% from 19.0% a year ago, led by favorable price/cost, cost reductions, and margin expansion efforts.

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Operating cash flow was $199 million, up from $120 million year over year. Free cash flow reached $171 million, compared to $69 million last year.

“We saw a healthy intake of orders across most of our lines of business, with total company book-to-bill in-line with our historical average of about 1.0. We also continue to add resiliency to our operations as we navigate a highly dynamic environment,”  said Blake Moret, chairman and CEO.

Buyback: During the quarter, the company repurchased 0.5 million shares for $129 million. As of March 31, around $1.1 billion remained under existing repurchase authorizations.

Return on Invested Capital for the twelve months ended March 31, 2025, was 14.2%, down from 18.0% in the prior year, primarily due to lower pre-tax net income.

FY25 Outlook Revised: Rockwell raised its adjusted EPS guidance to $9.20-$10.20 from the prior $8.60-$9.80 versus the $9.22 estimate.

The company reaffirmed its sales guidance of $8.10 billion, above the $8.04 billion consensus estimate.

The company revised its FY25 reported sales growth range to (4.5)%—1.5% from (5.5)%—0.5% due to ~ the (0.5)% FX impact on sales and reaffirmed its organic sales growth range outlook at (4)%—2%.

“We are raising fiscal year 2025 margin and EPS targets based on strong execution, with clear focus defined by the Rockwell Operating Model. Structural productivity is helping us expand our margins and invest for the future, even against the backdrop of current uncertainty,” Moret added.

Investors can gain exposure to the stock via ProShares S&P Kensho Smart Factories ETF (NYSE:MAKX) and Tema ETF Trust Tema American Reshoring ETF (NYSE:RSHO).

Price Action: ROK shares are up 8.28% at $274.00 premarket at the last check on Wednesday.

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